This Statutory Instrument has been made in part in consequence of defects in S.I. 2019/709 and is being issued free of charge to all known recipients of that Statutory Instrument.
2020 No. 1357
The Non-Domestic Rating (Rates Retention, Levy and Safety Net and Levy Account: Basis of Distribution) (Amendment) Regulations 2020
Made
Coming into force
The Secretary of State for Housing, Communities and Local Government makes the following Regulations in exercise of the powers conferred by sections 99(3) and 143(1) and (2) of, and paragraphs 6, 22, 25 and 30(2) of Schedule 7B to, the Local Government Finance Act 19881 (“the 1988 Act”).
In accordance with section 143(9D)2 of the 1988 Act, a draft of this instrument was laid before Parliament and approved by resolution of each House of Parliament.
Citation and commencement1
1
These Regulations may be cited as the Non-Domestic Rating (Rates Retention, Levy and Safety Net and Levy Account: Basis of Distribution) (Amendment) Regulations 2020.
2
These Regulations come into force on the day after the day on which they are made.
3
The amendments in regulation 3 have effect in relation to calculations for the financial year beginning with 1st April 2020 and subsequent financial years.
Amendment of the Non-Domestic Rating (Rates Retention) Regulations 2013
2
The Non-Domestic Rating (Rates Retention) Regulations 20133 are amended in accordance with regulations 3 and 4.
3
In Schedule 1 (non-domestic rating income), in the table in Part 2 (cost factors)—
a
for the row containing the entry for “Buckinghamshire non-fringe” substitute—
Buckinghamshire
Buckinghamshire Council
1.0719
b
for the row containing the entry for “Hertfordshire and Buckinghamshire fringe” substitute—
Hertfordshire fringe
The councils of the districts of Broxbourne, Dacorum, East Hertfordshire, Hertsmere, St Albans, Three Rivers, Watford and Welwyn Hatfield
1.0816
c
after the row containing the entry for “Merseyside” insert—
Milton Keynes
The council of the district of Milton Keynes
1.0675
4
In Schedule 4 (rules for estimation and apportionment of surplus and deficit), in paragraph 2(8), after paragraph (j) in the definition of L insert—
k
0% for a billing authority listed in Part 39 of Schedule 5;
Amendment of the Non-Domestic Rating (Levy and Safety Net) Regulations 2013
5
The Non-Domestic Rating (Levy and Safety Net) Regulations 20134 are amended in accordance with regulations 6 and 7.
6
In regulation 6 (individual levy rates and safety net thresholds)—
a
in paragraph (2A), after “(2D),” insert “(2DA),”;
b
after paragraph (2D) insert—
2DA
For an authority listed in Parts 9 and 20 to 34 of Schedule 3, and a pool of authorities named in those Parts, the individual levy rate for a relevant year beginning on 1st April 2019 is zero.
c
in paragraph (2E), omit sub-paragraph (b) (together with “or” at the end of sub-paragraph (a)).
7
1
Schedule 1 (calculation of retained rates income) is amended as follows.
2
In paragraph 1(1)—
a
for the first formula substitute—
b
in the definition of P—
i
in paragraph (a), for “or (d)” substitute “, (d) or (e)”;
ii
in paragraph (d), after “Parts” insert “2 to 9 or”;
iii
after paragraph (d) insert—
e
where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2020, the amount calculated for that authority in accordance with the formula—
where—
A is the amount specified for that authority in column E of Schedule 4;
B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2020; and
C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;
c
in the definition of Q—
i
in paragraph (a), for “or (d)” substitute “, (d) or (e)”;
ii
in paragraph (d), after “Parts” insert “2 to 9 or”;
iii
after paragraph (d) insert—
e
where the billing authority is listed in Parts 2 to 8 of Schedule 3, for the relevant year beginning on 1st April 2020, the amount calculated for that authority in accordance with the formula—
where—
A is the amount specified for that authority in column F of Schedule 4;
B is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2020; and
C is the small business non-domestic rating multiplier in relation to the year beginning on 1st April 2018;
d
after the definition of “T” omit “and” and insert—
U is the amount calculated in accordance with sub-paragraph (4C) in respect of a relevant year; and
3
In paragraph 1(4B)—
a
in paragraph (b), after “paragraph (c)” insert “or (d)”;
b
after paragraph (c), insert—
d
for Buckinghamshire Council, for a relevant year beginning on or after 1st April 2020, 71.6%.
4
After paragraph 1(4B) insert—
4C
The amount calculated in accordance with this sub-paragraph is the amount which is the difference between—
a
i
the total of the amounts credited to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of—
aa
a day in that year, and
bb
a day in a previous year where the amount was not credited in a previous year; less
ii
the total of the amounts charged to the billing authority’s collection fund income and expenditure account in the relevant year in accordance with proper practices in respect of non-domestic rates payable under sections 43 and 45 of the 1988 Act in respect of —
aa
a day in that year, and
bb
a day in a previous year where the amount was not charged in a previous year; and
b
the amount that would have been calculated under paragraph (a) if section 43(4E) were omitted.
5
In paragraph 2—
a
for the first formula substitute—
b
in the definition of P, in paragraph (d), for “21” substitute “9 and 20”;
c
in the definition of Q, in paragraph (d), for “21” substitute “9 and 20”;
d
after the definition of “U” omit “and” and insert—
“V is the sum of the amounts calculated in accordance with paragraph 1(4C) for each of the billing authorities that is required to make payments to the major precepting authority for the relevant year under Part 4 of Schedule 7B to the 1988 Act; and”.
Amendment of the Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 20198
1
The table in Schedule 5 to the Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 20195 (table of authorities, values for B and C) is amended as follows.
2
In column B of the entry for—
a
Bournemouth, Christchurch and Poole, for “£72,103,248” substitute “£71,492,000”;
b
Dorset, for “£58,171,978” substitute “£58,783,000”.
Signed by authority of the Secretary of State for Housing, Communities and Local Government
(This note is not part of the Regulations)